Sponsored Content By Genus Credit Services

PINCKNEY – Michigan’s cannabis industry generated more than $3 billion in sales in 2025 and supports hundreds of dispensaries, cultivators and processors across the state. Ohio’s adult-use cannabis market has quickly surpassed $1 billion in sales since recreational marijuana was legalized.

Yet despite the size of these markets, many cannabis businesses still struggle to obtain financing from traditional banks.

Federal marijuana prohibition continues to make many financial institutions cautious about lending to cannabis operators, even those with strong sales and proven track records. As a result, cannabis companies often find themselves searching for alternative sources of capital to fund expansion, acquire competitors, purchase equipment, finance inventory, or simply strengthen cash flow.

That’s where private capital lenders are stepping in.

“Traditional lenders look for deals that show little or no risk to the bank,” said Bill Shaw, Managing Partner of Genus Credit Services. “In the cannabis space, these conditions often leave borrowers in complex and sometimes desperate situations.”

BY THE NUMBERS

  • Michigan cannabis sales (2025): $3+ Billion

  • Ohio cannabis sales since adult-use launch: $1+ Billion

  • Financing available: $50,000 to $50 Million

  • Minimum operating history: 3 Years

  • Minimum annual revenue: $750,000

  • Potential closing time: 2-4 Weeks

Cannabis Industry Consolidation Is Creating Demand For Capital

The need for financing is growing as Michigan’s cannabis industry continues to consolidate.

Wholesale cannabis prices remain under pressure, competition remains intense, and operators face rising costs, including Michigan’s new 24 percent wholesale cannabis tax.

Some businesses are seeking financing to improve operations and strengthen balance sheets. Others are pursuing acquisitions, opening new locations, upgrading cultivation facilities, or purchasing distressed assets from competitors.

As consolidation accelerates across Michigan and Ohio, access to capital may determine which companies survive and which companies grow.

Why Alternative Lending Matters

Even when cannabis businesses qualify for conventional financing, obtaining funding can be a lengthy process.

Alternative lending often offers a faster path.

According to Shaw, financing transactions can often close in as little as two to four weeks when borrowers provide required documentation promptly.

One of Shaw’s favorite sayings is simple:

“If you comply, the deal will fly.”

The message is straightforward. Borrowers who quickly provide requested financial statements, tax returns, business records and other documentation help lenders evaluate opportunities faster and move transactions toward closing.

Shaw also advises borrowers not to overcomplicate the process.

“Give lenders exactly what they ask for and let them do their job,” he said.

What Is Private Capital?

Private capital refers to financing provided outside traditional banking channels.

The category includes private credit funds, family offices, private equity firms, specialty finance companies and other institutional lenders that provide capital directly to businesses.

Unlike traditional banks, private lenders often focus on business performance, cash flow, available collateral and growth opportunities rather than relying exclusively on conventional underwriting formulas.

For cannabis operators, private capital often represents one of the few realistic sources of substantial growth funding.

Who May Qualify?

According to Shaw, lenders generally are looking for established businesses rather than startups.

Cannabis businesses in Michigan and Ohio that have operated for at least three years and generate a minimum of $750,000 in annual revenue may qualify for financing through participating lenders.

The Ohio opportunity is particularly noteworthy because many dual-use dispensaries operated for years as medical marijuana businesses before adult-use sales began. Those operators may already satisfy the operating-history requirements commonly sought by lenders.

Available financing can range from approximately $50,000 to as much as $50 million depending on the borrower’s qualifications, collateral and business objectives.

Funding may be used for:

  • Working capital
  • Inventory purchases
  • Equipment financing
  • Cultivation expansion
  • Additional dispensary locations
  • Real estate acquisition
  • Business acquisitions
  • Facility improvements

What Can Be Used As Collateral?

Collateral requirements vary by lender and financing structure.

Potential collateral may include:

  • Paid-for business equipment
  • Commercial real estate
  • Investment accounts
  • Stocks and bonds
  • Other business assets

Primary personal residences generally are excluded.

Because Genus Credit Services works with a network of private lenders rather than serving as the lender itself, financing structures vary depending on the specific transaction and lender requirements.

Cannabis remains one of the fastest-growing industries in the Midwest, but many operators continue to face challenges accessing traditional financing.

Private capital is not the right solution for every company. However, for established businesses seeking growth capital, acquisition financing, equipment purchases, inventory funding or working capital, it may provide opportunities that conventional lenders cannot.

For profitable cannabis businesses in Michigan and Ohio, financing options exist.

Bill Shaw

Managing Partner

Email address: [email protected]

Phone: 810-423-1420

Or visit GenusCreditServices.com